PDA

View Full Version : Purchased for 240,000 equipment formerly owned LMNOP rental. Paid 140,00 cash and is


christinajane
Dec 14, 2011, 04:17 PM
Purchased for 240,000 equipment formerly owned LMNOP rental. Paid 140,00 cash and issued a one-year not payable for 100,000. How do I journalize this

pready
Dec 14, 2011, 06:19 PM
Debit Equipment for the total amount
Credit Cash for 140,000
Credit Notes Payable for the difference